Takeaways

• Changes to Colorado’s Family and Medical Leave Insurance (FAMLI) program taking effect 1.1.26.
• FAMLI will provide up to an additional twelve weeks of leave for individuals taking care of an infant in NICU.
• Employers may require an employee to apply for or exhaust FAMLI as a requisite to accessing employer provided benefits pursuant to the employer’s applicable policy but not as a prerequisite to accessing any types of leave that an employer is required to provide or that the individual may be eligible to apply for by law.

Article

Over the past year, a series of new laws, regulatory amendments, and official guidance have been introduced that will affect employer obligations under the Colorado Family and Medical Leave Insurance Program (FAMLI) beginning on Jan. 1, 2026.

Key changes include:

• The IRS issued new Tax Guidance on Feb. 10, 2025, that will affect FAMLI’s medical leave benefits that include guidance on how employers report FAMLI premiums. IRS Rev. Rul. 2025-4.
  
• Colorado adopted Senate Bill 25-144 (SB 25-144) on May 30, 2025, which:
  1) Expanded FAMLI to allow eligible employees to take up to an additional 12 weeks of FAMLI leave to care for a neonatal intensive care unit (NICU) patient for a total of 24 weeks;
  2) Reduced the premium for FAMLI from 0.9% to 0.88% for the upcoming 2026 calendar year; and
  3) Required that the director of the FAMLI Division on or before Sept. 1 of the preceding year adopt the premium rate for the following calendar year.
  
• ...

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